The shares of Karur Vysya Bank shot up by more than 4 per cent to Rs 231. After RBI gave a nod to acquire 9.99 per cent stake in karur vaishya bank on August 24.
The Shares of Karur Vysya bank shot up by 4 per cent in opening hour of the exchange. The stock opened at Rs 227.00 per share on the Indian stock Exchanges.
The stock touched a day-high price of Rs 231.50 per share on the National Stock Exchange. The shares of karur Vysya bank has recorded a all-time high price of Rs 232.75.
RBI nodded to SBI mutual fund
The Reserve Bank of India (RBI) approved SBI Mutual Fund's (SBI MF) acquisition of up to 9.99 per cent of the bank's paid-up share capital or voting rights.
Conditions for this approval include adherence to the Foreign Exchange Management Act of 1999, the guidelines for the purchase of shares, and the Banking Regulation Act of 1949.
The bank made it clear that in order to avoid having the RBI's approval revoked, SBI MF must obtain the majority shareholding within a year of the date of the approval.
Stake capped at 9.99 per cent
Additionally, SBI MF is required to make sure that its ownership of shares in Karur Vysya Bank does not surpass 9.99 per cent of the bank's voting rights or paid-up share capital.
Should their stake fall below five per cent, SBI MF will have to apply for new RBI approval before raising its position once more.
Karur Vysya bank Q1 FY25
Karur Vysya Bank reported a 27.86 per cent year-over-year increase in net profit in the June quarter, coming in at Rs 459 crore as opposed to Rs 359 crore the previous year.
In Q1 FY25, the bank's net interest income increased from Rs 897 crore to Rs 1,025 crore, a 14.27 per cent year-over-year increase. Nevertheless, because of growing deposit costs which rose by 52 basis points to 5.48 per cent in Q1 FY25, the net interest margin shrank somewhat to 4.13 per cent, down 6 basis points from the previous year.
